Decision Journey Flashcards
What are the 5 steps in the decision journey? What are the phases it’s split into?
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision (purchase != buy a product. can be any decision ~ what do with free time?)
- Post-purchase satisfaction
pre-purchase phase = 1,2,3
purchase = 4
post-purchase = 5
What is the need recognition part of the decision journey?
Noticing the difference between ideal and current states
Can be natural (with life changes or experience) or can be triggered by marketers
What is the information search part of the decision journey? What dictates the method used?
Where consumers look for info about products they think might satisfy their needs.
- internally: memory and associative networks
- externally: visit website, read reviews, free trials
Method dictated by motivation and ability to spend time and effort searching
ex: passionate about subject (motivated), internal search bc already knowledgeable on it (able), external search to get additional details (able)
VS
could be motivated but running late so UNABLE to search much :. skip to next step probably
What is the evaluation of alternatives part of the decision journey? What factors does it depend on?
Consumers arrive at a consideration set (evoked set) aka subset of products that they are considering purchasing. Now gotta evaluate further!
Factors:
- learning
- attitudes
- memory
- perception
- consumer using intuition vs reason
- what the set looks like
What is the purchase decision part of the decision journey? What factors are included?
Consumers have the intention to purchase a specific product (and will unless there is some sort of interference – such as product out of stock)
Different factors: where (online/in person), when (today/next week), how (credit/cash)
What is the post-purchase satisfaction part of the decision journey? What are it’s determinants?
How happy consumers are with what they bought - this impacts their thoughts for next time!
Determinants:
- expectations
- equity theory
- attribution theory
How do expectations impact post-purchase satisfaction? What should marketers do?
Satisfaction determined by difference between EXPECTATIONS and ACTUAL PERFORMANCE
a) expectations = actual performance :. happy :)
b) expectations > actual perf. (expected better) :. unhappy :(
c) expectations < actual perf. (expected worse) :. very happy :D
Marketers: need to manage expectations! So set accurate ones!
- DO NOT overpromise!
- Also do not always underpromise and overderliver! Will cause consumer to continue raising expectations and at some point you’ll be unable to meet them (okay to exceed expectations a bit though)
What is equity theory? How does it help determine satisfaction? What do marketers need to do?
Consumers observations of other consumers!
- their outcomes
- – Satisfaction depends on how equitable these outcomes are across consumers = I’m mad if someone paid less for the same thing OR happy if I got the better deal
- the processes involved to get those outcomes
- – Satisfaction from how equitable the processes are = how equally treated or how the rules are applied
Marketers: need be aware of inequalities and determine if dissatisfaction from process or outcome.
- fix outcome issue? consumer prefer $ (refund, free gift card)
- fix process issue? consumer prefer non-$ (apology, explanation, chance to vent)
What is attribution theory and the error that comes with? What do marketers need to do?
How consumers explain product outcomes.
Error is fundamental attribution error (explain successes and failures differently)
- use internal attributions for success (this thing is great because I’m smart – take personal credit for success)
- use external attributions for failures (this thing sucks by design) **ppl especially annoyed when failure under company control
Marketers: give customers explanations for failures, especially things under your control
Why is post-purchase satisfaction SO critical?
- impacts future purchase behaviours
AND - impacts other’s future purchase behaviours through reviews and word of mouth
What has changed about this linear model for the consumer decision journey? Do people skip the journey altogether?
It is less linear and less of a funnel now because info is available at all steps.
Yes people can skip! Go straight from need recognition to purchase or just straight to purchase. Why?
- habituation or impulse purchase
- depends on how involved they are (motiv. and ability)
- depends on how processing info (intuitive vs reasoning)
